Reuters
Papua New Guinea-focused Oil Search rebuffs $6.5 billion Santos bid
Oil Search rejected an unsolicited takeover proposal from Santos Ltd valuing the Papua New Guinea-focused oil and gas producer at A$8.8 billion ($6.5 billion), but both companies said on Tuesday they wanted to pursue further talks. Oil Search said the offer was not in the best interests of shareholders, but its shares rose 8% after both companies said it made sense to create a group that would rival Australia’s top independent gas producer Woodside Petroleum in market value. “Oil Search agrees with Santos that there is strategic logic in a combination of the two companies,” Oil Search said in a statement, but added that Santos had yet to come back with a fair offer.
